Polar Rose produced a cool product called FaceCloud, which brought face recognition to web services. Think photo tagging on Facebook to get an idea. iPodNN guesses that Apple may want to bring the service to MobileMe, thereby providing the Faces feature to those without iPhoto.
In addition, their very cool FaceLib technology allows mobile devices to recognize users' faces and pull up their associated social networking services, like Facebook, Twitter, Fickr and more. We can easily see such a thing working on the iPhone. Watch a video of FaceLib for Android after the break.